This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

How to Buy at a Market High Without Losing Your Shorts

NEW YORK ( TheStreet) -- Isn't it comforting to know we don't need to worry about the government shutting down or how high the debt ceiling can rise for three whole months?

Mr. Market saw this outcome for almost a week before the "all clear" signal was sent forth. That's why the S&P 500 was at a new 52-week high as of Thursday.

Many Mom and Pop investors and traders are wondering (and I speak with some of them daily) if it is too late to fish in the high tides of the oceanic U.S. stock market. After all, the U.S. stock market has risen nearly 30% in less than a year. How high can it go, and will it take a big dump first?

All I can say is, as Jim Cramer has often said, "Don't fight the Fed" and "The trend is our friend." No one knows for sure where the market averages will be tomorrow or next week. We take the markets one day at a time and look to save money and make profits.

Those of us who follow Cramer's charitable portfolio, Action Alert PLUS, wish we'd followed some of the recent stock recommendations that he and co-manager Stephanie Link made before this fantastic leg-up in the markets.

On Monday, they bought shares of Noble Energy (NBL) at $67.06.

Noble Energy is an oil and gas producer in the U.S., Equatorial Guinea and Israel. Fifty-seven percent of its production is U.S.-based, and 31% is derived from North American natural gas. It's one of the largest energy exploration-and- production companies in the world.

As I write, shares of NBL are trading up over 5% and intra-day hit a 52-week high of $70.78. This is just one example of some of the gainers Jim and Stephanie have experienced over the past week, when many investors were like deer in the headlights and unwilling to invest until...

So what can investors and traders do when the markets are exuberant?

First, you may want to sell into this if you are over-exposed to the market. You should know the appropriate asset-allocation strategy that's best for you and also have cash to buy the dips.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,075.81 -96.87 -0.56%
S&P 500 1,986.03 -8.26 -0.41%
NASDAQ 4,515.1840 -12.5050 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs